Continuing its vigorous legal challenge of Education Department regulations, the Association of Private Sector Colleges and Universities, the main lobbying group for for-profit colleges, filed suit today in federal court to block the department’s “gainful employment” rule. The wide-ranging regulation, which will cut off federal student aid to programs that fail to meet benchmarks for their graduates’ loan repayment and debt-to-income ratios, was issued last month in what many observers said was considerably softer form than originally proposed. But the for-profit association, which mounted a fierce lobbying campaign against the rule, said it was still unsatisfactory. The policy represents “regulatory overreach,” it conflicts with the intent of Congress, it was developed through a “flawed process,” and it was created “without adequately exploring the impact on minorities, women, and jobs,” according to a news release the association issued. The group’s lawsuit followed by two days its announcement that it would appeal a federal judge’s upholding of two other regulations, which bar deception in college recruiting and ban commissions for college recruiters.
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